Cost Control Frameworks

When we work on projects, we are constantly watching the schedule and budget, but (if I had to pick) these are the 6 things we do that always save us the most on costs: 1 - Review and modify layouts to maximize efficiency. Stacking floor plans (or at least plumbing) is a must. We also look to minimize shared circulation and unfinished/unused spaces as much as possible. While it's tough to pinpoint the savings directly tied to these strategies when well-implemented, we've seen (many times) how wasteful it is when these aren't considered. (Intimate knowledge of the building code goes a long way here.) 2 - Schedule overlap where possible. Not everything needs to happen sequentially. We identify tasks that can run concurrently without compromising quality, significantly reducing overall project timelines. We do this for entitlements, design and construction 3 - Participate in scope meetings - all of them. When you're present for these discussions, you catch potential issues before they become expensive problems. This creates clarity for everyone involved. 4 - Create, maintain, and use vendor relationships. When you have reliable partners who understand your standards, it results in faster quotes, better pricing, and priority scheduling when you need it most. We also share news of upcoming projects with vendors, which helps everyone plan ahead and provide preferred availability. Some of our vendor relationships have saved us hundreds of thousands on single projects. 5 - Structure weekly team meetings. These check-ins create accountability and provide space to address small issues before they become major obstacles. A 1-hour meeting can save days of rework, especially when the meetings follow a structured agenda, where meeting minutes and action items are shared with the entire team. 6 - Track invoicing consistently & review the budget monthly. We do this in the industry-standard format of an anticipated cost report, which matches contract values vs what has been committed and paid to date across consultants and contractors. This disciplined approach to financial management identifies cost exposure early and prevents budget surprises. It's not just bookkeeping—it's proactive risk management. Implementing this framework consistently is how we straighten out projects that have gone a bit sideways, but it's also a great way to run a smooth process from the beginning. This approach doesn't have to be perfect. Implementing only some of these, even partially, is better than nothing. If you're new to development or struggling to find a firm footing on a current project, doing these consistently will help provide the team with clarity, and hopefully, that means ownership can provide clear direction.

As more and more organizations are exploring the potential of deploying Copilot Agents, the discussions are usually centered around two key topics: - Security and Governance - Cost controls As we've been quietly building a ton of capabilities in the background for both pillars for the past few months, the time has come to evolve these capabilities into a comprehensive framework any organization can follow. Introducing our Agent Cost Management Framework. Step 1: Estimation -> Access the Copilot Studio Agent Consumption Estimator here: https://lnkd.in/e4XewZxa. This tool allows organizations to forecast monthly message consumption, compare costs between Prepaid and PAYG billing models, and understand what messages might be covered under existing Microsoft 365 Copilot licenses. Step 2: Billing setup -> - Prepaid message packs: https://lnkd.in/e5GdvyKW - Pay-As-You-Go (PAYG): https://lnkd.in/e3J9YHyE - Microsoft 365 Copilot license: https://lnkd.in/ehUh-fj2 Step 3: Tracking and forecasting -> view detailed reports that are available in the Copilot Control System (CCS - https://lnkd.in/eFj3T4c4) and Power Platform Admin Center (PPAC - https://lnkd.in/e2SNZegz) - Message consumption reports with user-level and agent-level breakdowns   - Real-time alerts for high consumption, allowing proactive adjustments - Historical data views to support budget planning and trend analysis - Azure Cost Management integration for advanced analysis and automated governance workflows Step 4: Active Management and Controls - Manage who can create or use agents to prevent sprawl and reduce risk - Implement per-user and per-agent message limits to enforce fairness and prevent runaway costs - Use granular departmental billing to allocate costs to business units - Block or deactivate agents as needed to maintain policy compliance Learn more about our Agent Cost Management Framework here: https://lnkd.in/e2TTXESS Watch a session about our Agent Cost Management Framework here: https://lnkd.in/ey249X-7 Comprehensive E-Book about our Agent Cost Management Framework: https://lnkd.in/ezhksri3

General idea : 💡 Integration of Project Management and Cost Control : Project Planning must include accurate cost estimates and a feasible budget. Monitoring & Controlling integrates performance and cost metrics. Scope and schedule changes can directly impact cost; hence, change management is critical. Project Management Overview : Project Management is the process of leading the work of a team to achieve specific goals and meet success criteria within a defined timeframe. Key Components: Initiation – Defining the project at a broad level. Planning – Establishing the scope, timeline, cost, quality, and communication plans. Execution – Implementing the project plan and managing teams. Monitoring and Controlling – Tracking progress, managing changes, and ensuring goals are met. Closing – Finalizing all activities, closing contracts, and assessing performance. Key Areas (as per PMBOK Guide): Scope Management Time Management Cost Management Quality Management Risk Management Human Resource Management Communication Management Procurement Management Stakeholder Management Cost Control Overview : Cost Control in project management involves managing and regulating the project budget to ensure that the project is completed within the approved budget. Key Objectives: Avoid cost overruns Ensure funds are used efficiently Align costs with project scope and timeline Key Steps in Cost Control: Cost Estimating – Predicting the costs of resources and activities. Budgeting – Aggregating estimated costs to establish a baseline. Cost Monitoring – Tracking actual costs against the baseline. Variance Analysis – Comparing planned vs. actual costs (e.g., using Earned Value Management). Corrective Actions – Taking action if deviations occur (e.g., rescheduling, scope adjustments). Tools : Earned Value Management (EVM) Cost Performance Index (CPI) Budget Forecasting Change Control Systems Software Tools (e.g., MS Project, Primavera, Excel)

𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐧𝐭𝐫𝐨𝐥𝐬 𝐈𝐬 𝐍𝐨𝐭 𝐨𝐧𝐥𝐲 𝐚𝐛𝐨𝐮𝐭 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐢𝐧𝐠 Project controls is often mistaken for just scheduling. In reality, it encompasses a range of disciplines that ensure project success — from cost and risk management to earned value and change control. Schedule control is a critical part of this ecosystem, but not the whole picture. Projects are composed of multiple interdependent components — timelines, budgets, resources & risks. Limiting project controls to scheduling overlooks their strategic value. 𝐖𝐡𝐚𝐭 𝐀𝐫𝐞 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐧𝐭𝐫𝐨𝐥𝐬? Project controls are structured processes for tracking and influencing time, cost & performance outcomes across a project’s lifecycle including: -Scheduling -Cost Management -Risk Management -Change Control -Earned Value Management (EVM) -Forecasting -Reporting & Analytics 𝐁𝐫𝐨𝐚𝐝𝐞𝐫 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐧𝐭𝐫𝐨𝐥𝐬 Project controls ensure projects stay on track by managing performance across key areas, enabling proactive decision-making: -Time (Schedule) Control Set baselines, monitor progress, detect delays &apply recovery plans. -Cost Control Track expenses, compare actuals to budgets & forecast future costs to maintain financial discipline & accountability. -Risk Management Provide early warnings ,Identify & mitigate risks before they impact the project, using risk registers, simulations & contingency plans. -Change Management Evaluate & document changes to scope, time, or cost to prevent scope creep & ensure transparent governance. -EVM Integrate cost & schedule data to measure performance objectively & forecast project outcomes. -Forecasting & Reporting Deliver real-time insights on project health through dashboards, KPIs & trend analysis for informed decision-making. 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 𝐨𝐟 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐧𝐭𝐫𝐨𝐥𝐬 A well-structured control process includes: -Set Baselines – Define scope, schedule, and budget baselines -Measure Performance – Collect time, cost & resource data -Analyze Variance – Compare actuals vs. plan -Identify Root Causes – Investigate deviations -Implement Corrective Actions – Adjust plans or resources -Communicate & Document – Keep all stakeholders informed 𝐓𝐨𝐨𝐥𝐬 & 𝐓𝐞𝐜𝐡𝐧𝐢𝐪𝐮𝐞𝐬 -Performance Reviews: Evaluate task completion, team efficiency -Critical Path Method: Identify tasks that directly affect project timeline -Monte Carlo Simulation: Simulate risk scenarios & outcomes -Variance Analysis: Detect and explain cost/schedule deviations -Resource Leveling: Prevent over-allocation of staff & resources -Contingency Planning: Plan for schedule or cost risks with recovery options -Integrated Dashboards: Real-time reporting for better decision-making 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 Project controls are not just about scheduling. While schedule control is vital, it must be integrated with cost, risk, and change management for effective project governance and success. #Managemnet #Project #Controls